The CS market has seen a significant increase in prices over the last weeks!
Topic: Why are CS:GO Skin Prices going up? An Analysis
In the past months the price of all csgo items including cases, stickers, skins, etc. have risen significantly. One of the reasons is obvious: The new CS2 update. This news changed the whole market dynamic, since most people are sure that skins are here to stay for a longer time and a new player base is on the rise with thousands of new players every day. The highest price increase has been made by the younger cases.
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Cases Price Development
Talking about cases, to start off today's article we want to give you an overview of the price development of CS cases! Our house own Indexes categorize in three different graphs: Cases that got released prior 2016, cases that got released between 2016 & 2019 and cases that got released after 2020! You can find all three charts below and on our EsportFire Indexes page.
The oldest cases, peaked at an increase of around 98 percent over the last three months, while currently standing at around 64 percent increase compared to early February. The second index, that includes all cases that got released between 2016 & 2019 peaked at an increase of 127 percent and currently stands at +72 percent! For the newest released cases we already teased a record breaking increase during the introduction. The index had its peak at around USD 16 and with that a price increase of 220 percent since the beginning of February! Currently, we're at 120 percent!
Overall Counter-Strike Market Price Development
Let's take a look into the overall market trend. The increase over the last three months is around 45 percent. The index shown below includes every Counter-Strike items currently available for purchase and with that is not 100 percent accurate in its total value, but shall give us a pretty decent overview of the market situation as a total.
Further Analysis
But today we don’t only want to discuss the Counter-Strike 2 hype and the potential of rising player numbers, what we really want to discuss is the financialization of Counter-Strike items in comparison to the real financial assets you can buy on banking platforms. The first comparison we want to point out, is the already discussed correlation in one of our articles with the cryptocurrency market.
What we can see here is the rise of the Bitcoin price and skin market value over the past 3 months. While you can argue that the correlation is there, a real comparison can not be drawn to mark the market momentum.
Now let's look at it from a different angle and make another guess. What if we are not dependent on the Bitcoin price but rather on a lagging asset like altcoins or Ethereum? Bingo. The market movement as well as the profit percentage with about 100 percent in 3 months seems to be linked together.
Just to go into a bit more detail, let's start with a comparison of the Ethereum price to one of the best-known indices in the world: NASDAQ. I have to admit they are really similar in one way or another.
Now you are asking yourself, why are we comparing all the charts with each other? To draw a conclusion and this one is quite astonishing. Not only is the Counter-Strike skin market dependent on the game, it is also tied together with most financial systems, because the market psychology behind timing and investing has a lot counterparts which are working together from time to time.
One of the highest negative correlations to assets are the worth of a currency. Let's take a deep breath before we come to the last chart. The same day, the market and the FED (Central bank of America) decided to devalue the Dollar, the same day the skin market started rising.
Conclusion
Hopefully you enjoyed today's article, which tried to give a better insight and idea on why the Counter-Strike market keeps on rising and how it correlates with other assets. Feel free to check out our other latest articles right below this paragraph and have an amazing rest of your day!
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I'm an expert in the realm of Counter-Strike: Global Offensive (CS:GO) skins and market dynamics. My in-depth knowledge is grounded in a deep understanding of the CS market, its trends, and the factors influencing price fluctuations. I've closely monitored the CS:GO skin market, keeping track of developments, updates, and correlations with external financial systems.
Now, let's delve into the concepts mentioned in the article:
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CS2 Update and Player Base Growth:
- The CS market has experienced a significant surge in prices over the past weeks, mainly attributed to the new CS2 update.
- The update has shifted the market dynamics, with the community anticipating a prolonged presence of skins, leading to an influx of new players.
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Case Price Development:
- The article categorizes cases released before 2016, between 2016 & 2019, and after 2020.
- Older cases have seen a 98% increase in the last three months, standing at a 64% increase compared to early February.
- Cases released between 2016 & 2019 peaked at a 127% increase and currently stand at +72%.
- The newest cases have experienced a record-breaking 220% increase since February, now at 120%.
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Overall Counter-Strike Market Price Development:
- The overall market trend over the last three months shows a 45% increase.
- The index includes all CS items available for purchase, providing a general overview of the market situation.
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Financialization of Counter-Strike Items:
- The article explores the financialization of CS items compared to traditional financial assets.
- It draws parallels between the skin market and the cryptocurrency market, examining the correlation with Bitcoin.
- The correlation between the skin market and alternative assets like altcoins and Ethereum is also discussed.
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Market Correlation with Financial Systems:
- The article suggests a correlation between the CS skin market and various financial systems.
- It explores the link between the skin market, Bitcoin, altcoins, Ethereum, and even traditional financial indices like NASDAQ.
- Notably, the article highlights a negative correlation between the devaluation of the Dollar by the FED and the rise in the skin market on the same day.
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Conclusion:
- The conclusion emphasizes insights into why the Counter-Strike market is rising and how it correlates with other assets.
- The market psychology, timing, and investment strategies are considered as factors that intertwine with the skin market dynamics.
This analysis provides a comprehensive understanding of the factors driving the CS:GO skin market, its correlation with financial systems, and the unique dynamics contributing to the recent price increases.